The State Bank of India (SBI), India’s largest public sector lender, has announced that its board has approved the sale of a 13.19% stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for a total consideration of ₹8,888.97 crore.
In a regulatory filing, SBI said that the Executive Committee of the Central Board (ECCB) gave the go-ahead to divest 413.44 crore equity shares of Yes Bank at a price of ₹21.50 per share. This strategic divestment represents a significant portion of SBI’s holdings in the private lender.
As of March 2025, SBI held a 24% stake in Yes Bank. Post-sale, its shareholding will reduce to approximately 10.81%, pending regulatory clearances.
The transaction is subject to all required statutory and regulatory approvals by the acquirer and is expected to be completed within 12 months from the execution date.
This move is part of SBI’s ongoing efforts to optimize its investment portfolio and create long-term value, while enabling global financial players like SMBC to gain exposure in India’s growing private banking sector.
About SBI
Headquartered in Mumbai, the State Bank of India commands a 23% market share by assets and over 25% share of total loans and deposits in the Indian banking sector, making it the country’s largest and most influential bank.
